Jay Chmelauskas: Outlook for Lithium (Day 1 - Session 1: Strategic metals and the clean-tech revolution)


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Day 1 - Session 1: Strategic metals and the clean-tech revolution

Outlook for Lithium

Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Jay Chmelauskas - Western Lithium Corp

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Jay Chmelauskas: Outlook for Lithium (Day 1 - Session 1: Strategic metals and the clean-tech revolution)

  1. 1. day 1 – Session 1: Strategic metals and the clean-tech revolution ? <br />Outlook for LithiumJay Chmelauskas – President, Western Lithium Corp<br />
  2. 2. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />
  3. 3. Western Lithium<br />September 2010<br />“Outlook for Lithium”<br />www.westernlithium.com<br />
  4. 4. Kings Valley Lithium Project<br />Cautionary Statement<br />This presentation contains projections and forward looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.<br />4<br />
  5. 5. China Overtakes USA in 2009<br />Automobile Production and Sales<br />Source: Wikipedia; Associated Press; US Bureau of Economic Analysis<br />5<br />
  6. 6. Oil Consumption for Emerging Economies<br />China/India can expect a 10 to 20 fold increase <br />Source: Marc Faber<br />6<br />
  7. 7. $280 Billion<br />(Auto’s, Electronics)<br />This Decade… Major Multi-National Companies will Depend on Lithium Producers<br />$70 Billion<br />(Batteries)<br />$1 to 3<br />Billion<br /> (Lithium)<br />7<br />
  8. 8. Worldwide Lithium Production 2008<br />USA<br />1 deposit<br /> 3,700 T<br />China - Multiple deposits<br />9,900T<br />Chile & Argent. - 2 deposits<br />71,000T<br />Australia<br />1 deposit<br />28,700T<br />Source: Roskill 2008<br />8<br />
  9. 9. Quotes<br />“Demand will be so big there will have to be new sources of supply….”<br /> Rockwood (Chemetall) Holdings Chairman &CEO, Seifi Ghasemi – Feb. 2010<br />“We have begun to look for our next source of lithium to be ready [by the middle of the decade]” <br />FMC Corp President, Pierre Brondeau - July 2010 <br />"We are one of the largest and most responsible companies in the world, so we are always looking at options….. If we don't move fast enough, we will miss our chance,“<br />SQM president , Patricio de Solminihac – Aug. 2010<br />9<br />
  10. 10. World Lithium Resources<br />Western<br />Lithium<br />Producing<br />Development Projects<br />M Tonnes LCE<br />No Development Plans<br />Source:  R. Keith Evans, 2010; Roskill Information Services<br />Ltd., 2009 for China; and company disclosures.<br />Estimates are not NI 43-101 compliant.<br />10<br />10<br />
  11. 11. Estimated Lithium Supply and Cost Curve<br />Includes Announced Producer Expansions <br />Spodumene<br /> (hard rock) Mines1,3<br />Chinese Salars4<br />Uyuni, Bolivia4<br />7<br />Argentinean <br />(silty clastic) Salars3<br />6<br />5<br />000s $/Tonne Estimated Production Cost<br />Atacama (halite) Salar1,3, Chile<br />FMC1,3, Argentina<br />Western Lithium Nevada2<br />Est. Cost Range<br />4<br />000s Tonne/pa LCE<br />3<br />2<br />1<br />400<br />500<br />300<br />200<br />100<br />000s Tonne/pa LCE<br />2008 World Production1<br />Incremental demand from 5% EV and 10% Hybrid adoption5<br />Incremental demand from 10% EV and 20% Hybrid adoption5<br />Roskill 2009. (2) WLC PAEE, Jan. 2010. (3) Company <br />Estimates for selected proposed projects. (4) Analyst Estimates. (5) Canaccord Adams.<br />11<br />11<br />
  12. 12. Market Opportunity – Explosive Growth <br />Est. World Market<br /> with EV's<br />Demand - Tonnes LCE (000’s)<br />Price - US$/Tonnes LCE<br />Price<br />Demand<br />Est. World Market<br />with 5.9% CAGR<br />(no EV’s)<br />Financial<br />Crisis<br />World Lithium Market<br />Potential World<br />Lithium Market<br />Source for Market Size: Roskill 2009 for historical demand; Canaccord Adams for projections (No EV <br />scenario includes 12% annual growth in electronic use and 4% growth in industrial use). Source for Pricing: Industrial Minerals. Lithium carbonate, del continental, USA large contracts, US$ per lb, high.<br />12<br />
  13. 13. Western Lithium in Nevada<br />13<br />
  14. 14. Highlights of Stage I Scoping Study<br />Proposed Project Expected Low-cost LCE Producer<br />Planned production: 27,700 tpa LCE 115,000 tpa potassium sulphate (SOP)<br />Cash operating costs: $1,967 per tonne ($0.89/pound) LCE<br />(after SOP by-product credit) <br />Average annual revenue: $263 million<br />NPV (discounted at 8%): $714 million<br />IRR (pre-tax): 28%<br />Capital costs: $427 million<br />Operating Life: 18 years (with expansion potential)<br />NI 43-101 compliant Preliminary Assessment and Economic Evaluation (PAEE). All above figures in U.S. dollars.<br />14<br />
  15. 15. Stage I Development Timeline<br />15<br />2008<br />2009<br />2010<br />2011<br />2012<br />2013<br />2014<br />Resource<br />Delineation<br />Engineering Scoping &<br />Feasibility Studies<br />Pilot Testing<br />Permitting<br />Detailed Engineering<br />& Construction<br />Commissioning<br />15<br />
  16. 16. Western Lithium Corporation<br />USA-Based Lithium to Power Today’s Electric Cars <br /><ul><li>$16.5 Million Cash (Cdn)/No Debt
  17. 17.  $6.5 Million In-The-Money Warrants
  18. 18. 82.8 Million Shares Outstanding
  19. 19. 111.4 Million Fully Diluted
  20. 20. 23.7% owned by Western Uranium
  21. 21. Market Cap. $93 million (Cdn)</li></ul>WLC Share Price<br />16<br />
  22. 22. www.westernlithium.com<br />Email: info@westernlithium.com<br />Western Lithium Investor Relations: 1-604-681-3071<br />Exchange Symbols: TSX-V: WLC; PK: WLCDF<br />
  23. 23. GLOBAL MININGINVESTMENT CONFERENCE 2010<br />Lead sponsors:<br />Media partners:<br />Other sponsors & participating organisations:<br />